Results presentation 1Q2013

Transcription

1 Results presentation 1Q th April 2013

2 Bankinter presents its financial statements following format and criteria stated by Circular of Banco de España 4/04. Bankinter cautions that this presentation contains forward looking statements. Such forward looking statements are found in various places throughout this document and include, without limitation, statements concerning our future business development and economic performance. While these forward looking statements represent our judgment and future expectations regarding the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to (1) general market, macro-economic, governmental and new regulations, (2) variation in local and international securities markets, currency exchange rates and interest rates as well as change to market and operational risk, (3) competitive pressures, (4) technological developments, (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties. 2

3 Results Asset Quality Solvency The Business 3

4 Results 4

5 Growing pattern in results Profit before tax (million ) 63,5 65,2 68,4 67,8 +6,8% -42,9 1Q12 2Q12 3Q12 4Q12 1Q13 5

6 1Q13 Results P&L Million 1Q13 1Q12 Dif Dif % Interest and related income 376,2 449,6-73,4-16,3 Interest and related charges -243,5-284,9 41,4-14,5 Net Interest Income 132,6 164,6-32,0-19,4 Dividend income 2,2 1,5 0,7 48,0 Equity method 3,6 3,9-0,4-10,0 Net fees and commissions 55,9 48,7 7,3 14,9 Trading income 66,6 43,4 23,3 53,7 Other operating income/expense 59,6 50,1 9,6 19,1 Gross Operating Income 320,6 312,2 8,4 2,7 Personnel expenses -84,7-80,9-3,8 4,7 General expenses/amortization -80,0-83,5 3,5-4,2 Redundancy charges -2,2-3,7 1,6-41,6 Total expenses -166,9-168,1 1,2-0,7 Pre provisioning profit 153,7 144,0 9,7 6,7 Provisions & Other 0,1-0,6 0,7-119,7 Asset impairment charges -74,7-80,2 5,5-6,9 Net Operating Profit 79,1 63,2 15,9 25,1 Gains/losses on disposals of assets -11,3 0,2-11,6 -nr Profit Before Taxes 67,8 63,5 4,3 6,8 Corporate tax -17,4-14,0-3,4 24,2 Net Income 50,4 49,4 0,9 1,9 6

7 Interest margin contraction comes to an end Net interest income (million ) 164,6 174,0 174,9 146,7 132,6-19,4% 1Q12 2Q12 3Q12 4Q12 1Q13 7

8 Client margins improve in the quarter despite de drop in the yield curve Client margin (in %) Monthly client margin evolution 0,92 0,97 0,85 0,72 0,75 0,83% 0,86% 1Q12 2Q12 3Q12 4Q12 1Q13 o-12 n-12 d-12 j-13 f-13 m-13 8

9 Significant drop in the cost of retail deposits Credit yield and cost of liabilities (in %) Monthly evolution of term deposit costs (in %) -6bps 3,24% 3,19% 3,04% 2,86% 2,80% 3,69 3,68 3,66 3,58 3,41 2,32% 2,23% 2,19% 2,14% 2,05% -9bps 3,18 1Q12 2Q12 3Q12 4Q12 1Q13 Credit Yield Cost of liabilities o-12 n-12 d-12 j-13 f-13 m-13 9

10 Changes in the structure of retail funding Retail funding quarterly evolution (billion ) Maturity structure of term deposits(in %) 23,6 23,4 24,6 25,0 25,2 4% 27% 55% (+24pp) 17% 38% 48% sight(+7 p.p o/1q12) 50% 33% 18% 12% 4T12 1T13 1Q12 2Q12 3Q12 4Q12 1Q13 < 3 months 3 to 6 months 6 to 12 months > 12 months 10

11 Mortgage repricing comes to an end and the change in the mix continues Eur 12M moving average 2,02% Implicit spreads in repriceable credit Weight over total credit 31,3% 32,7% 34,5% 35,2% 35,4% 1,23% 0,92% 3,74% +50pbs o/1q12 4,24% 1Q12 2Q12 3Q12 4Q12 1Q13 1,04% 0,21% 1Q12 2Q12 3Q12 4Q12 1Q13 Eur 3 months Spread 11

12 Our focus on Private Banking shows in fee income growth Net fees by quarter (million ) Fees breakdown (million ) 48,7 49,9 51,5 53,8 55,9 +14,9% o/1q12 1Q12 2Q12 3Q12 4Q12 1Q13 1Q13 1Q12 Dif % Brokerage 10,0 9,8 1,6% Asset Management 12,8 10,8 18,5% Insurance 10,7 10,9-1,3% Payment & collections 18,2 15,5 18,0% Other 20,0 20,2-1,2% Fees received 71,7 67,2 6,7% Fees Paid 15,8 18,5-14,8% Net fees 55,9 48,7 14,9% 12

13 Reduction in the extraordinary contributions to the FGD Other operating results (million ) Total 50,1 58,4 53,5 53,3 59,6 +19,1% o/1q12 3,3 4,3 4,3 6,2 0,5 66,1 67,1 67,6 65,2 68,3-19,3-13,0-18,4-18,1-9,2 1Q12 2Q12 3Q12 4Q12 1Q13 LDA Insurance Margin Other FGD 13

14 We continue to gain efficiency Group Costs ( million ) Cost to income ratio Banking Group ( in %) 5,6 5,6 47,9 48,2-0,7% 43,9 43,2-0,7p.p 114,7 113,2 1Q12 1Q13 Banking activity LDA Intg. Amort. 1Q12 1Q13 14

15 Despite investments in strategic businesses costs in the banking activities are contained Costs of the Banking Activities (million ) 3,7 2,2-1,3% 48,6-3,5% 46,9 +2,9% 62,3 64,1 +17 Relationship Managers 1Q12 1Q13 Personnel Admin+amort Redundancy 15

16 Pre provision profit grows in a sustained manner Pre provision profit (million ) 159,6 +6,7% 153,7 144,0 146,7 138,8 1Q12 2Q12 3Q12 4Q12 1Q13 16

17 Impairment losses in financial assets Financial asset impairment losses (million ) Total 80,2 74,7-6,9% 117,4 60,4 74,7-97,6 RDL's Generic Specific 1Q12 1Q13 17

18 1T13 results summary o o o o Net interest income will follow an upward trend in the next quarters supported by an important reduction in cost of retail funding and the ongoing upward repricing of credit. Our commitment towards Private Banking shows in net fee income. The good behavior of the insurance activity and lower contributions to the Deposit Guarantee Fund also support ordinary margin Costs continue to be contained and efficiency gains are preserved. We continue reinforcing provisions and delivering net result growth over the same period

19 Asset Quality 19

20 Best in class asset quality NPL ratio evolution * Residential mortgage NPL ratio evolution * Sector Bankinter 10,40% 4,50% Sector Bankinter 3,84% 2,29% 1Q Q * Sector data : BdE Feb 13 for total NPL ratio and Dec 12 for Mortgages 20

21 Problematic assets are contained and remain low Problematic asset evolution (million ) ,3% o/4q % Reestructurings vs 12% Peers 1Q12 4Q12 1Q13 NPLs Substandard Foreclosures 21

22 Good behavior of delinquencies and net entries in NPLs are contained Net entries by quarter (million ) ,6% Deliquencies* o/1q12 1Q12 2Q12 3Q12 4Q12 1Q13 NPL's Substandard Foreclosures * Unpayments under 90 days 22

23 The exposure to developers continues reducing Million 4Q12 1Q13 Dif. NPLs Substandard Performing TOTAL EXPOSURE Probl. asset ratio 38% 38% - Provisions Coverage 82% 82% - 23

24 Break down of foreclosed assets By asset type (million ) Residential Land Other Total Gross value 310,5 123,7 193,6 627,8 Provisions 94,9 75,78 63,72 234,4 Net value 215,6 47,89 129,9 393,4 Coverage 31% 61% 33% 37% 24

25 We double the speed in the sale of foreclosed assets Million 1Q12 1Q13 Gross entries 49,1 59,4 Gross sales 22,4 43,2 % sales 45,6% 72,7% Gross discount -28,7% -44% Provisions 26,3% 37% Net result -2,3% -7,3% 25

26 Coverage levels of problematic assets are preserved Provisions for problematic assets (million ) ,5% Including write offs Coverage Ratios % 37% 43% NPLs Foreclosures Total 4Q12 Specific Foreclosures 1Q13 Write offs 26

27 Solvency 27

28 Solvency continues to reinforce EBA capital ratio ( in %) 0,17 0,38 10,2 10,4 10, Capital generation 1Q13 Rval Reserve Total 28

29 1Q13 wholesale maturities fully financed in the market 2013 maturities and issues by quarter (billion ) 1,2Bn issues in 1Q13 1,2 1,2 1,4 8,2Bn Collateral 0,6 0,0 1Q13 2Q13 3Q13 4Q13 Maturities Issues +0,2Bn BEI covered bonds 29

30 The financing structure continues improving Evolution of the liquidity gap (billion ) Evolution of the loan to deposit ratio (in %) 17,2 16,2 14,8 160,8 149,5 144,7-1,4bn Liquidity gap in 1Q13 1Q12 4Q12 1Q13 1Q12 4Q12 1Q13 30

31 Business 31

32 Innovation is part of our DNA Mobile payments Corporate bonds broker motivational saving

33 Quality of service differentiation Objective quality analysis of bank networks 8 7,5 7 6,5 7,19 6,95 6,92 6,77 6,55 6,61 6,78 6,97 7,22 7,49 Leader in 1Q13 6 6,11 6,06 6,01 6,08 5, Q13 Bankinter Market Source: Stiga

34 Strong client acquisition continues Clients acquired 1Q13* (Thousand) Number of clients acquired by segments 15,7 16,3 +3,9% Private Banking 469 Corporates Commercial B Sme s 1Q12 1Q13 * Excludes Obsidiana and LDA 34

35 Change in the mix of the loan portfolio Total lending (billion ) Lending to enterprises (billion ) -2,3% +8,7% 42,0 41,0 15,2 16,5-6,2% Redidential mortgages 1Q12 1Q13 1Q12 1Q13 35

36 Residential mortgage exposure continues to reduce Retail mortgages percentage over total risk (in %) New mortgage production spreads (in %) ,0p.p 2,8 3,58 2,9 2,8 3,1 1Q12 1Q13 1Q 2Q 3Q 4Q

37 Retail funds retention despite yield cuts Retail funds ( billion ) 23,6 25,0 25,2 4,2 4,4 2,7 10,3 9,7 10,6 9,7 10,1 12,2 +6,5% +1,5bn 1Q12 4Q12 1Q13 Sight Term Pagarés 37

38 Invesment funds also show a very positive evolution Investment funds(billion ) 4,84 5,03 6,01 +24,3% 1Q12 4Q12 1Q13 38

39 Our bet for private banking is reflected in AUM s Private Banking AUMs (billion ) 14,3 14,8 1,54 +11% 1,71 +3,7% +2,9% 12,74 13,11 4Q12 Execution 1Q13 Discretionary 39

40 Significant increase in discretionary management mandates and SICAVs Number of SICAV s Number of discretionary management mandates ,7% 338 8,8% Market share X10 1Q12 4Q12 1Q13 1Q12 4Q12 1Q13 40

41 Positive evolution of pension funds Pension funds (billion ) 1,31 1,39 1,45 Bankinter, ranked first bankassurance firm according to Capgemini ,8% 1Q12 4Q12 1Q13 41

42 Over 2 million policies in 1Q13 Total policies(in thousand) +6% 2,7 175,6 15,5 236,1 +34,4% -0,7% Insured vehicle park ,4% -3,2% Car sales to individuals 1Q12 1Q13 Auto Home Assistance 42

43 Beating the market in premium growth Premiums (million ) ,4% +31,4% Vs +0,6% Home insurance -3,2% Vs -6,9% Auto insurance 1Q12 1Q13 Auto Home 43

44 Efficiency gains continue Combined ratio(in %) 91,1 89,3-1,8 p.p 72,9 70,3 18,3 19,0 1Q12 Expenses 1Q13 Claims 44

45 A profitable and solvent business Profit before tax* (million ) +9,6% 29,3 32,2 21,5% Stand alone ROE LDA Group 1Q13 Dif /1Q12 Solvency ratio 372% +88 p.p 1Q12 1Q13 Technical provision cover 164% +17 p.p *LDA stand alone 45

46 In summary 46

47 Summary o o o o o Bankinter 1Q13 results show the end of the interest income compression and relevant improvements in noninterest income particularly in fee income. Asset quality continues to be best in class, credit restructurings are the lowest in the system and coverage levels are adequate. The Loan to deposit ratio continues to improve and we have been able to refinance all wholesale maturities in the quarter, increasing durations and reducing funding costs. Solvency has been further reinforced by retained earnings and also through the capitalization of the revaluation reserve. Our investments in Private banking are bearing its fruits and the insurance activity continues to grow steadily. 47

48